Daily Commodity Outlook, July 13 2020
<p><span>Asian stocks went higher on Monday as the new earning season is going to kick start, which could provide key information on how companies are coping with the pandemic. The Hong Kong dollar is suddenly looking vulnerable, affected by Beijing’s decision to impose laws curbing dissent in the city. Investors are closely watching the inflows and outflows into the HK market.</span></p>
<p><span>USD continued the slide as the global equity rally continued on Monday. Florida on Sunday posted the biggest one-day rise in cases since the coronavirus pandemic began in the U.S., reporting 15,300 new infections. South Carolina and Texas set new marks a day earlier, while New York’s rate remained steady. It is time to have a reality check on the stock market rally and this earnings season will be in close watch.</span></p>
<p><span>Copper prices reached its highest in nearly 25 months on Monday, driven by supply worries from top producer Chile due to a potential strike at a mine. According to Reuters, workers at Antofagasta Minerals’s Zaldivar copper mine in Chile voted in favor of strike action after rejecting a pay offer, the mine’s union indicated, adding that a strike had been set for July 15, pending government mediation.</span></p>
<p><span>Gold prices rallied higher, holding firmly above the $1,800/oz key level, as concerns over the surge in the number of COVID-19 cases worldwide and a weakening Dollar buoyed demand for the safe-haven metal. In line with our fundamentals, prices are facing bullish pressure from our ascending trend line where we maintain our bullish outlook. </span></p>
<p><span>Oil prices edged lower at the start of today’s Asian trading session, ahead of an OPEC+ meeting this week. Observers are expecting the group to announce plans to start tapering historic production cuts against the backdrop of further rise in coronavirus cases around the world. The CAD weakened in line with oil prices, however it failed to underperform against the USD as the greenback continued its downwards slide amidst rallying global equities.</span></p>
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<p><b>Technical & Trade views</b></p>
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<p><b>USDCAD (</b><b>Intraday bias: bearish below 1.3585)<br />
<img class="aligncenter size-large wp-image-46955" src="http://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-6-1024x489.png" alt="" width="1024" height="489" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-6-1024x489.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-6-300x143.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-6-768x367.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-6.png 1111w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>We turned bearish as price is approaching 1st resistance where the horizontal overlap is and is likely to reverse off the level towards 1st support where the 61.8 fib extension and 61.8 fib retracement are. MACD also indicates bearishness.</span></p>
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<p><b>UKOIL (</b><b>Intraday bias: Bearish below 43.68)<br />
<img class="aligncenter size-large wp-image-46956" src="http://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-6-1024x491.png" alt="" width="1024" height="491" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-6-1024x491.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-6-300x144.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-6-768x368.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-6.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Oil price drifted lower before coming back up close to previous high at 1st resistance (43.68). With stochastics testing resistance where price reacted in the past, a short term push down below 1st resistance towards 1st support at 42.09 is expected.</span></p>
<p><b></b><b>XAUUSD (</b><b>Intraday bias: Bullish above 1789.21)<br />
<img class="aligncenter size-large wp-image-46957" src="http://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-6-1024x537.png" alt="" width="1024" height="537" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-6-1024x537.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-6-300x157.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-6-768x403.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-6.png 1111w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is facing bullish pressure from our ascending trend line and a break above our upside confirmation level at 1813.47 could provide the bullish acceleration to our first resistance level. The Ichimoku cloud is showing signs of bullish pressure as well, in line with our bullish bias. </span></p>
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<p><b>XCUUSD (</b><b>Intraday bias: Bearish below 2.97472)<img class="aligncenter size-large wp-image-46958" src="http://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-6-1024x528.png" alt="" width="1024" height="528" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-6-1024x528.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-6-300x155.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-6-768x396.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-6.png 1107w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is facing bearish pressure from our resistance in line with our 78.6% and 127.2% fibonacci extension where we could see a reversal below this level. Stochastic is facing bearish pressure from our resistance as well. </span></p>
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<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-outlook-july-13-2020/">Daily Commodity Outlook, July 13 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>